Netflix beats profit forecasts, but shares fall on growth worries
Netflix earned 87 cents a share in the July-September quarter, above the 82 cents analysts expected, and revenue rose about 12% to $12.87 billion. But it forecast fourth-quarter revenue of $13.4 billion, slightly below analysts' expectations, and lowered its ad sales outlook. Shares fell in after-hours trading Tuesday.
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Why it matters
Netflix forecast fourth-quarter revenue of $13.4 billion, slightly below analysts' expectations, and lowered its ad sales outlook. The company announced last week that it will cut about 6% of its workforce.
What to watch
Peter Rice takes over as Netflix's chief content officer on Oct. 26.
Sources
- AP via KSAT: Netflix posts higher Q3 profit but revenue growth worries pull shares lower
- TheWrap: Netflix revenue, advertising slowdown rattles Wall Street
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